Rupee on losing streak, dips to seven-month low against dollar

18 April 2018

The rupee continued its losing spree on Wednesday, trading at 65.78 against the US dollar at the start of the day. It, however, stabilised at around 65.61 by evening. The currency is trading at a new seven-month low against the US dollar.

Fears of continuing rise in oil prices, the widening current account deficit in India and also of a global trade war have brought pressures on the Indian currency over the past few days.

India’s trade deficit shot up to $13.69 billion in March, up from $11.98 billion a month earlier.

Growing tensions between America and Russia, especially over the Syrian strikes by US, French and British forces, have dampened the mood.

There are also fears about the impact on trade with the US after India was listed along with China, Japan, Germany, South Korea and Switzerland as six major trading partners that warrant placement on a monitoring list meriting close attention to their currency practices.

The US Department of the Treasury, in its semiannual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners, noted that while the currency practices of the six countries were found to require close attention, no major trading partner met the relevant legislative criteria for enhanced analysis in 2017.